What should a boat insurance policy cover?

When you're looking into a boat insurance policy at the Lake of the Ozarks, you want to make sure the following items are covered: coverage for the boat, engine, boating equipment, dinghies, and trailer. You also need to look into medical payments coverage for onboard injuries and liability coverage for any property damage or bodily injury you may be legally responsible for. Keep in mind that not all boat insurance policies will cover these items, so it's important to discuss with your Lake of the Ozark insurance agent anything that may be missing from your coverage and see if there are any additional options available to make sure your boat and equipment are properly covered.

What does "Actual Cash Value" and "Agreed Value" mean?

Boat insurance policies at the Lake of the Ozarks are written as either "Actual Cash Value" or "Agreed Value", so when deciding on coverage, it's important to know the difference. Actual cash value means that for total losses your payout is based on the current market value of your boat. For partial losses, you receive the value of the loss less depreciation and the deductible. The benefit is that you pay less upfront, but the downfall is that you pay more to get back on the water after a loss. Agreed value means that for a total loss, you are paid an agreed policy value, which means you know how much you'll get in the event you lose your boat. Partial losses are subject to the deductible and some items will also be adjusted for depreciation. All losses on boating equipment are replaced "new for old" after the deductible.

Are other people NOT listed on the policy covered in the event of an accident?

The answer is two-fold. Yes, if someone is operating the boat with your permission and not being compensated to do so, they are covered under the conditions of the policy. However, if you rent or lease the boat out to someone, then the policy coverage does not apply. If you hire someone to "captain" the boat for you, liability coverage is not provided for them. Basically if your boat is being used for commercial purposes, you more than likely will run into the risk of an incident not being covered under your boat insurance policy. If you use your boat for commercial purposes, it's important to speak to your insurance agent at the Lake of the Ozarks about proper coverage.

About the Author:Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.